At the end of June, European ETF assets had grown by 14.6% year-to-date (YTD), up from $1.42trn at the end of 2022, marking a considerable upswing in the sector’s performance, the research and consulting firm ETFGI said on 12 July.
Net inflows during June were pegged at $10.2bn, pushing the six month net inflows to a substantial $72.15bn. Furthermore, the figures indicated a robust inflow for the ninth consecutive month, asserting the sustained growth trajectory of the European ETFs industry.
While the $72.15bn YTD net inflows in 2023 are the second highest, they still trail the record $111.95bn net inflows in the first half of 2021.
“The S&P 500 increased by 6.61% in June and is up 16.89% year-to-date in 2023. Developed markets excluding the US increased 4.46% in June and are up 11.07% YTD in 2023,” commented Deborah Fuhr, managing partner, founder and owner of ETFGI, in a press statement.
Among the developed markets, Korea and Israel led the charge with a rise of 2.23% and 1.51%, respectively. The momentum was not exclusive to developed markets. Emerging markets recorded a growth of 4.33% in June and are up 4.64% YTD. Leading the emerging markets were Pakistan and Turkey with an increase of 8.61% and 5.85% respectively in June.
The growth in ETFs underscores their popularity among investors as cost-effective and efficient investment vehicles. These funds offer significant diversification benefits, flexibility in trading and access to a wide range of asset classes, sectors and commodities, which makes them an attractive investment avenue.
